Labour Law- II

Dr. Atul S. Jaybhaye

Assistant Professor of Law
B.A.,LL.M.,NET, Ph.D.
HNLU, RAIPUR
Concept of Social Security
There is no any particular definition of social security.
It follows the different economic policies laid down by the government.
Social security improves the standard of life of workers.
Social security is a measure of income maintenance or income security.
It is a safety provided by the society against risks, natural calamities, social or
economic depression.
When it is helpful?
At the time of inadequate wages.
Illegal deductions.
Irregularities in payment.
Arbitrary dismissals.
Unemployment.
Sickness.
Accident.
Death of bread earner etc.
Definitions of Social Security
International Labour Organisation:

“The security that society furnishes, through appropriate

organisation, against certain risks, to which its members are
exposed.
Definitions of Social Security
National Commission on Labour:
“Social security envisages that the members of the community shall be protected by
collective action against social risks causing undue hardship and privation to individuals
whose primary resources can seldom be adequate to meet them.

 The concept of social security is based on ideals of human dignity and social justice.

 The under lying idea behind social security measures is that a citizen who has
contributed or is likely to contribute to his country’s welfare should be given protection
against certain hazards or as consequence of it”.
Definitions of Social Security
Fried Lander defines social security as ….

“a programme of protection provided by the society against these

contingencies of modern life- sickness, unemployment, old age,
dependency, industrial accidents and invalidism against which the
individual cannot be expected to protect himself and his family by his own
ability or foresight.
Definitions of Social Security
Mr. V.V. Giri:

It is the security that the state furnishes against the risks which an
individual of small means cannot, today, stand up to by himself or even on
private combination with his fellow countrymen.
Need for Social Security
 To ensure standard of life to workmen/ members of the society.
 To protect workers from uncertain risks.
 To meet objectives of Social welfare State.
 To maintain social and economic justice in the society.
 To curb poverty, unemployment and diseases.
 To provide medical care and income security against the consequences of
defined contingencies.
Objectives of Social Security:
I. Compensation
II. Restoration
III. Prevention
Features of Social Security
It provides financial helps in case of contingencies.
It covers wide variety of health and welfare schemes.
It provides some form of cash payments, though, laws differ from country
to country.
It is a wise investment which motivate the employees and boost their
confidence.
Social security measures are established by law.
Scheme of social securities
Sukanya samridhi yojna

 National Pension Scheme

It’s a voluntary pension scheme introduced with an aim of fulfilling retirement needs. It is
regulated by the Pension Fund Regulatory & Development Authority.

 Pradhan Mantri Jan Dhan Yojana

suitable for the economically weaker sections of the society who do not even have a bank
account.

 Public Provident Fund (PPF)

which aims to benefit self-employed people to save for their retirement. It offers tax benefit
under 80 C of the Income-Tax Act and provides a tax-free return on maturity.
Scheme of social securities
Pradhan Mantri Jeevan Jyoti Bima Yojana
It is a life insurance scheme backed by the Government of India.

Atal Pension Yojana

It is intended to provide pension benefits with a minimum contribution per
month. This scheme is targeted to the unorganised sector and provides pension
benefits with a minimum contribution per month.
Types of Benefits Available to the Workers
Old age benefit: - provides for the payment certain (consolidated) amount
of money depending upon one’s contribution before the retirement age.

Survivor’s benefit: - This benefit, grants payments to the aggrieved family

following the death of the bread winner either for the life or for a limited.

Unemployment benefit: - These benefits cover the loss of earnings during a

worker’s unemployment period when he is incapable of doing the job and is
available until he remains unemployed.
Types of Benefits Available to the Workers
Disability benefit

Sickness benefit

Medical care

Employment Injury benefit

Origin and Development of S.S.
Origin of social security can be categorised into three phases:

a. Hindu period;
b. Muslim period; and
c. British period.
Origin and Development of S.S.
Hindu period;
 In ancient India, joint Hindu family was the unit of social organisation and was also the
original cell for security.

 obligations of the parents to support the child in infancy and of the son to support the
parents in old age were in existence.

 The society in ancient India did not witness the class struggle as between the employer-
employee.

 “Ancient Indian jurists like Brihaspati, Yagnavalka, Vishnu etc., had framed extensive laws
regarding wages and conditions of work.
Origin and Development of S.S.
Kautilya’s Arthashastra is the building example of the introduction of the
philosophy of social security in ancient India.

 Kautilya has also mentioned a number of pension schemes ,Financial

assistance, public poor relief etc in his work.

He says that “State itself should provide support to poor, pregnant women,
to their new born off spring, to orphans, to the aged, the infirm, the
afflicted and the helpless”.
Origin and Development of S.S.
Muslim Period:
 The impact of Muslim culture and thought on India gave a new depth to the concept of
charity and social service. Islam enjoins five major duties on its followers, one of which is
‘Zakat’, meaning charity.
 The Mughuls had a special governmental department to supervise the administration of
charities and endowments.
 Among Mughal rulers, Akbar the Great made certain provisions for learned people.
 The motive of charity was religious rather than safe guarding the economic interest of
the poor.
Origin and Development of S.S.
British Period:
Technological developments and industrialisation led to the establishment
of two distinct classes in the society i.e. employers and employees.
 Hire and fire policy was adopted under the laissez- faire system.
The workmen on many occasions combined for increasing wages and
reducing hours of works, but went in vain.
Origin and Development of S.S.

 Impact of two world wars:

 Trade unions were legalized in some countries.

 ILO gave a morale boost to the Indian workers to have organized movements for redressing their
grievances.
 Need for protecting workmen against hazards of life such as the injury, sickness, maternity, old age.
 No proper legislation for the protection of workers against social and economic contingencies except
the Fatal Accidents Act, 1855; The Factories Act, 1948 etc .
Origin and Development of S.S.
Royal Commission on Labour :
Appointed in 1929 to enquire into the working conditions of industrial labour.
Introduced a scheme of health insurance of industrial workers on a contributory basis
financed by the employers and by small deductions from the wages of workers.
 It also emphasised the necessity for making some provisions against old age as the
workers are unable to save out of their low earning against old age.
Recommended for maternity benefits as well as payment of gratuity.
Origin and Development of S.S.
Post Independence Phase:
Free India adopted generally Mahatma Gandhi’s ideas and made laws to regulate labour
demands in the country.
Workers were looked down for centuries as belonging to ‘Sudra’ or ‘Low’ and sometimes
even untouchable castes.
 India adopted the Scheme of Employees State Insurance Scheme.
The Employees State Insurance Act, 1948, “factory workers on selected industrial areas
can obtain sickness, disablement and medical benefits”.
 Origin and Development of S.S.
Government formulated a five year programmes for the welfare of labour class, features of the programmes are
follows:
I. Organisation of health insurance scheme, applicable to factory workers to start with;
II. Revision of Workmen’s’ compensation Act;
III. A central law for maternity benefit;
IV. Extension to other classes of workers of the right, within specific limits, to leave with allowance during the
sickness.
Origin and Development of S.S.
Introduction of five year plans :
India began the process of planned economic development in the start of First
Five Year Plan in April 1951.

Planning was introduced to provide certain directions aimed at physical, social

and moral improvements of labour that has directly impact on social security.
Origin and Development of S.S.
First Five Year Plan (1951-1956)
Objectives :-
I. better standard of life for the people and social justice.
II. basic needs of the workers in respect of food, clothing and shelter
III. Wider provision of social security, better educational opportunities and
increased recreational and cultural facilities.
IV. To provide reasonable amenities for workers , essential needs
Origin and Development of S.S.
First Five Year Plan (1951-1956)
To minimize inequalities between the rich and poor, between the urban
and rural areas.
To protect the workers from occupational hazards.
Origin and Development of S.S.
Second Five Year Plan (1956 - 1961)
Objectives :-
1. A sizeable increase in national income so as to raise the level of living.
2. Rapid industrialisation of the country with particular emphasis on the development of
basic and key industries.
3. A large expansion of employment opportunities by developing labour-intensive projects
and small scale industries.
4. Reduction in inequalities of income and distribution.
Origin and Development of S.S.
Second Five Year Plan (1956 - 1961)
Objectives :-
right to a fair wage has been recognised.
suggested that employees’ provident funds should be extended to cover more industries
and commercial establishments.
requirement to improve the conditions of labour through legislations such as Factories
Act, 1948, Mines Act, 1952 and Plantation Labour Act, 1951 .
Origin and Development of S.S.
Third Five Year Plan (1961-1966)
Gave importance to social assistance programmes for..

The physically handicapped

Old persons

women and children

Origin and Development of S.S.
Source of Assistance:

charitable
organisations

municipal panchayat
bodies, samitis

voluntary special
organisatio welfare
ns. funds
Constituents of Social Security
Social
Security

Social Social
Insurance Assistance
Constituents of Social Security
Definitions of Social Insurance:
I. “Social insurance is a giving return for contribution benefits up to subsistence level as of
rights and without means and tests so that individual may build freely up to it.”
II. “Social Insurance is social co-operative derive which aims at granting adequate benefits
to the insured on the compulsory basis at times of unemployment, sickness and other
emergencies.”
III. “Social Insurance is a group idea of helping the needy people who are not able to work
due to certain risks.”
Features of Social Insurance
Schemes of Social Insurance is financed by the small contribution made by the employees and
major portion by the employers.
In all the schemes of social insurance Participation is compulsory with only few exceptions.
Under these schemes contributions are accumulated in special funds out of which benefits are paid.
The contribution and benefit rates are often related to what the person is or has earning.
Social insurance helps the employees to maintain their minimum living standard when there is

total or partial loss of income.
Social Assistance
Definitions:
“Social Assistance is a service or a scheme which provides benefits to persons of small means as of right in amount
sufficient to meet minimum standards of need.
“The Social Assistance schemes are designed to help people who are in financial difficulties.”
“In social Assistance schemes conditions of entitlement are prescribed by Laws and require that applicants have limited
incomes and assets.”
Social Assistance
Definitions:
social assistance is given as a voluntary help while social insurance is granted to those
persons only who pay a contribution.

“Social assistance represents the unilateral obligation of the community towards its
dependent groups. It is provided by the society or the government to the poor and needy
individuals.”
Features of Social Assistance
I. Objective to cover poor sections of people in the society who cannot effectively protects risks and contingencies to
which they are exposed.
II. Social assistance is an expression of social responsibility of state towards its needy person.
III. Social assistance is financed wholly or for a very large measures from the general revenues of the state.
IV. Social assistance requires the fulfilment of certain prescribed conditions before the benefit can be granted under such
scheme.
The ILO is…
…the first specialized UN Agency

...devoted to advancing opportunities for women and

men to obtain decent and productive work in
conditions of freedom, equity, security and human
dignity
The ILO Social Security (Minimum Standards) Convention, 1952 (No. 102)
 It is the only international instrument, based on basic social security principles, that establishes
worldwide-agreed minimum standards for all nine branches of social security. These branches
are:

 medical care;
 sickness benefit;
 unemployment benefit;
 old-age benefit;
 employment injury benefit;
 family benefit;
 maternity benefit;
 invalidity benefit; and
 survivors' benefit.
The ILO Social Security (Minimum Standards) Convention, 1952 (No. 102)
Convention No. 102 does not prescribe how to reach these objectives but leaves
certain flexibility to the member State. They can be reached through:
 universal schemes;
 social insurance schemes with earnings related or flat rate components or both;
 social assistance schemes.
 Guarantee of defined benefits;
 participation of employers and workers in the administration of the schemes;
 general responsibility of the state for the due provision of the benefits and the
proper administration of the institutions;
 collective financing of the benefits by way of insurance contributions or taxation.
ILO conventions on S.S.
 The Social Security (Minimum Standards) Convention, 1952 (No. 102)
 The Equality of Treatment (Social Security) Convention, 1962 (No. 118)
 The Employment Injury Benefits Convention, 1964 (Schedule I amended in 1980) (No.121)
 Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128)
 The Medical Care and Sickness Benefits Convention, 1969 (No.130)
 The Maintenance of Social Security Rights Convention, 1982 (No. 157)
 The Employment Promotion and Protection against Unemployment Convention, 1988 (No.168)
 The Job Creation in Small and Medium Sized Enterprises Recommendation, 1998 (No. 189)
 Maternity Protection Convention (Revised) 2000 (No. 183)
The Equality of Treatment (Social Security) Convention, 1962 (No. 118)
Convention No. 118 addresses the issue of the social security of migrant
workers in a global manner.

A ratifying State undertake to grant equality of treatment to nationals of

other ratifying States (and their dependents) with its own nationals.
The Employment Injury Benefits Convention, 1964
It includes:
Incapacity for work, invalidity or a loss of faculty due to an industrial accident or a prescribed
occupational disease.
Convention No. 121 envisages that all employees, including apprentices in the public and private
sectors, and in cooperatives, are to be protected.
 Three types of benefits: medical care, cash benefits in the event of incapacity for work and loss of
earning capacity (invalidity), and cash benefits in the event of the death of the breadwinner.
30. Appeals.
An appeal shall lie to the High Court from the following orders of a Commissioner, namely:--
 an order awarding as compensation a lump sum
 an order awarding interest or penalty under section 4A;
 an order providing for the distribution of compensation among the dependants of a deceased
*[employee], or disallowing any claim of a person alleging himself to be such dependant;
 an order refusing to register a memorandum of agreement or registering the same or providing for the
registration of the same.